Reminder: Deadline approaching for company directors to apply for director ID

If you are a director of a company, registered Australian body or registered foreign company and don’t have your director ID yet, you should apply now.

Director IDs have been introduced to Australia to prevent the use of false or fraudulent director identities. It is a 15-digit unique identifier assigned to a director for life.

It is a criminal offence if Australian directors do not apply on time for their director ID, and penalties may apply.

You can learn more about director IDs and apply via the Australian Business Registry Services (ABRS), or you can refer to our previous article on director IDs if you need guidance on how to apply.

Application deadlines for director ID

When you must apply for your director ID depends on the date you become a director. Below is a guide for application deadlines:

Director ID deadline scrapped for resigned directors

Former company directors will not be required to obtain a director identification number (director ID) by the November 30 deadline if they have ceased all directorships before December 1, under new rules issued by the Australian Taxation Office (ATO).

Issued on November 15, the draft legislation instrument, titled ABRS 2022/D1, indicates that individuals who have resigned from director roles, including those of corporate SMSF trustees, from April 4, 2021 to November 30, 2022 are exempt from applying for a director ID.

“The instruments will relieve particular classes of persons from the obligation to obtain a director ID,” a draft explanatory statement supporting the draft legislative instrument said.

“To ensure that affected classes of persons benefit from this relief and do not become liable to any penalties for not applying for a director ID, the instrument for resigned directors and non-individual directors under the Corporations Act must take effect from December 1, 2022.”

Due to the timing of the release of the draft instrument being close to the original November 30 deadline to apply for a director ID, the amendment will retrospectively commence from December 1, 2022.

Note that this update does not permanently individuals them from the director ID system.

A person who resigns from a director role before December 1, 2022 but later becomes a director again will still have to obtain a director ID prior to any appointment.

What are the director ID offences and penalties?

The Australian Securities and Investments Commission (ASIC) is responsible for enforcing director ID offences, as set out in the Corporations Act 2001.

Below are the director ID offences and penalties, as enforced by ASIC:

Need help with director IDs? Speak to the team at LDB Group

There are many good reasons to avoid delaying your application for a director ID, including civil and criminal penalties. But it’s just as important to submit your application correctly.

Issues such as applying for more than one director ID or providing incorrect information can also lead to penalties.

LDB Group can assist with the gathering of required documentation before you proceed, as well as advise you on what to look out for.

If you have any questions, please give us a call on (03) 9875 2900 or send us a note via the contact form below.

Editor’s note: This article was originally published on October 28, 2022 but has since been updated to include new information.